core is credit, not equities. >> that doesn't mean he doesn't have smart people there. >> i want to echo the breakdown in the correlation. you should see the same breakdown between oil and our stock market, because that's positive for consumers. >> he's kind of smart too, he made the good call on apple too, right? >> brilliant investor. >> have a great weekend. "power lunch" starts now. scott, gentlemen, thank you very much. welcome, everybody, to "power lunch." with melissa lee, michelle caruso-cabrera, back today, brian sullivan, i'm tyler mathisen. two big things happening, chris christie, new jersey's governor, endorsing donald trump as a new war of words is breaking out in the republican party. it was a slap fest last night on stage in houston. meantime, right now, apple holding its annual shareholder meeting in cupertino. look at the stock. it is up a little bit, a third of 1%. it has been sliding as the company has been dealing among other things with the fbi phone

back door issue. the deencryption fight they're having. we'll talk to a senator, well versed in telecommunications, who is trying to find a compromise on that. we'll get all the latest from that shareholder meeting out in california. we begin, melissa, with oil. >> yes. of course, crude oil continuing its volatile moves in the market today, trading higher now as talks of a production cut are still in the works between both opec and nonopec countries. i spoke exclusively with the nigerian oil minister, emanuel kuchuku who said not only is a production freeze in the works, but the saudis are leafing t in effort to push through the freeze. >> we're working the issue. the minister for energy in qatar, who is opec president, who took over for me, is leading that. that is a lot of conversation going on and a lot of consensus built in on the issue of freeze in saudi arabia and russia all aligned on this.

and i think right now our effort is to get everybody aligned on the freeze. >> he went on to say the freeze would be the precursor to potential production cut. let's bring in now john kildof of again capital and cnbc contributor. john, what do you make of the comments? >> i think it could be true. i think it was done because of the pleadings of the venezuelans for sure and it is nothing if not clever, melissa, by the saudis to do this. not only do they know everyone's trying to pump as much as they can and they are, but also it sort of forced iran's full re-entry into the market if they're stuck having to stay at january's levels. it kind of -- it is a clever move by them. >> i thought his comments were fascinating, given what we heard from iran, calling a production freeze a joke, essentially, and what we heard from ali al niemi, he's willing to see $20 a barrel. i asked about those comments, because that seemed to take a

freeze off the table. he said, i can't speak for them, but i just talked to the saudis. what is happening here? because the market is trying to decipher every single comment being made in the marketplace. >> and they're getting rewarded for what is being seen as an air of cooperation. a first step. but this is classic double speak from opec in terms of wanting to cooperate, letting the market decide the price. and let the -- as you heard niemi say earlier this week as well, that it is the problem for the higher cost producers, not saudi arabia right now. they have to cut, not us. he doesn't trust anyone else to cut either. so, again, this is a lot of hopeful talk. nigeria, probably the second most battered opec member nation in this whole rundown in crude oil prices. they can't even sell their oil. >> we have to be clear, though, john, we said opec production cut like it is a thing. it is rare. right? they did it -- >> hold on one second. to donald trump who is speaking now in the wake of chris

christie endorsing him. hold on. >> what changed the -- >> how did you know i was talking to mr. trump? by the way -- listen, i think you watch the act senator rubio has been putting on over the last few weeks. he's gone now and part of his talking points are to try to be entertain and smile a lot. listen, it is one act after another. we don't need any more washington, d.c. acts. the acts i wanted to get rid of are washington, d.c. acts. as a governor from a state capital, i said we don't need somebody from washington, d.c. what i most consistently said during that campaign was the problem is washington, d.c. and we don't need washington, d.c. politicians to come in and fix it. and so when you look at who is remaining on that stage, there is no question that this is the person who will go to washington, d.c., and be able to absolutely turn the place around. we don't need anymore washington politicians, especially some who only have been there for one term and never really shown up for work to tell us how to run

the united states government. and so i absolutely believe that donald trump is the best person on that stage to be president of the united states. onone last thing, by the way, there was a period of way i was running against him. he knew when i was running against him i wanted to beat him and he wanted to beat me. we had open conversations about that. that part of this is over and then you have to say to yourself as a good, loyal, american who is best person to stop hillary clinton from ever getting inside the white house again? this is the best person to do that. turn away from the amateur acts from washington, d.c. and turn to a professional strong leader, that's who this man is. >> you did say how -- you asked how is he going to do this. >> yes. >>. [ inaudible ] >> -- furthermoirmly vetted in establishment -- [ inaudible ] >> no, what my intent for being

here today is to say to anyone willing to listen, not just members of the rga or donors, but to the american people, you need a strong, tough leader to restore america's greatness. and this is the best person to do that. and so whatever message anybody else wants to take from that, they can take whatever message they like. most of the time you know that people do best with me. if they don't try to figure out what the message is, they just listen. they listen to what i say. i don't send smoke signals. what i'm doing today is endorsing the person i believe is the best person to defeat hillary clinton and restore american jobs, restore american prestige around the world, and restore the faith and confidence of the american people again in the fact that we are an exceptional and great nation. mitt romney, to donald trump, they're very different fellows.

[ inaudible ] >> polls are all over the place. >> i think we have a great shot. i think that people are liking me a lot. i know a lot about texas. i have many friends in texas. many, many friends. i'm here a lot. i think we have a really good chance. if you look at south carolina, that was supposed to be cruz's stronghold, his stronghold. he was going to win that easily and i won by 22 points, won in a landslide, won evangelicals, won military, won the vets, i won everything. i won men, i won women, i won hispanics, i won every single category. same thing in nevada. we came in, we won every category including, by the way, hispanics. so, you know it was supposed to be a stronghold. he was supposed to do great there. he lost by a lot. i think i should have a really good chance of texas. i see the bloomberg poll came out and it is massive leads in every state. we're doing very well in texas. the emerson poll came out, we're tied or effectively tied. i think we'll do very well here.

we'll be here. i'm here now. i would love to get texas because of my relationship to texas, so many friends, okay. mark. [ inaudible ] >> well, he's desperate. look, look, i watched a part of his little act and he's a desperate guy. i've been watching him over the last number of -- he is not presidential material that i can tell you. doesn't have the demeanor. he is a nervous nelly. watch him backstage. he's a mess. the guy is a total mess. and, you know, i joked recently about can you imagine putin sitting there waiting for a meeting and rubio walks in and he's totally drenched. i don't know what it is. but i've never seen a human being sweat like this man sweats. don't think he's presidential. i don't think he's presidential caliber. i don't think he has the demeanor. i don't think he's going to do very well and he's a mess because in florida, which he abandoned, by the way.

i love florida. i've invested hundreds of millions of dollars. i own doral. i own many clubs, including mar a lago. i own many. a lot of real estate along the shore in miami that worked out well with the desers. i'm a major investor in miami, one of the biggest. frankly the people in florida like me. but for me to go into florida and have, like, a 20-point lead over the sitting senator, but, remember, the senator abandoned florida. he left florida. he was supposed to be there -- he defrauded. if you think about it, he defrauded florida, the people of florida, they elected him as a young senator. he goes there and before he sits down, he starts running for president.

i don't think he has the right temperament. i watched chris do a number on him. i almost never seen a meltdown like that in my life. and it is interesting about people who choke. i watched people choke over the years. and once a choker, always a choker. it never, ever changes. the guy that misses the kick misses the kick. when he misses the first one, you got to get rid of him because it doesn't work. once a choker, always a choker. and that was one of the epic meltdowns. he didn't know where he was. i thought he was going to -- i thought he was going to die. good going, chris. >> mr. trump, mr. trump -- >> i don't want to discuss that, but he got the talent. we didn't talk about it.

we actually did not even talk about it. but he certainly has a lot of talent. yes, katie. >> mr. trump, the irs said there is nothing precluding you in its rules from releasing your taxes -- >> let me tell you something. let me tell you something. we talk about establishment and all. i think it is very unfair that for many, many years i've been audited. i have many, many friends that are very rich people and they never -- they have never been audited. i was with somebody the other day, very rich guy, i said, how often are you audited? he said, audited? he didn't know what i was talking about. i have many, many rich friends, almost all of them and they're never audited. why am i audited every single year? so i'm going to put you people to rest. until my audit is finished, very simple, you're not going to see anything. when it is finished, you're going to see it. i'm noti going to complicate things by doing this. why is it that every single year -- i'm talking about beyond barack obama, but every year during his term also, every

single year i'm audited. not fair. >> why would you not appease them and release a -- >> i can't tell you why. >> why would you not -- >> i can't tell you why. all i can say is many, many people i know that are very, very wealthy are not audited. >> what about releasing a past return? [ inaudible ] >> yeah. >> -- series of business disasters -- >> which is -- which is totally wrong. totally wrong. he also said i got $200 million from my father. i wish. i wish. i got a very, very small loan from my father, many years ago. i built that into a massive empire. and i paid my father back that loan. and, bit way,y the way, my fath me some money, nothing like the numbers you heard, but by that

time, it was many, many years later when my father passed away. my father, more than anything else, i learned a lot from my father. but for this guy, this lightweight, i call him a lightweight, to say $200 million, in fact, the first call i got last night was from my sister, and then a call from my brother, and they said, wow, how does he say that? that's not true. they understand. we have five in the family. and they say, so in other words, anything also would be split up. but she called, she said, is that untrue. and it is a shame. i'll tell you where they got it, the new york times wrote -- i call it the failing new york times because it is a totally failing paper with some really inaccurate reporting. and purposefully inaccurate. they go out of their way. if you try to make a correction prior to the story, they don't want to do it. they made a statement about it. i don't know where they got it. i would tell you the number is wrong by a factor hundreds of -- by a fortune.

i got a small loan, started a business, and it is now worth billions and billions and billions of dollars. and if i ever wanted to sell the assets i have, trump tower, the bank of america building in san francisco, big chunk, 1290 avenue of the americas, some of the best land in the country, doral country club, turnberry in scotland, home of the open championship, referred to as the british open, my -- my property would sell for numbers like nobody would believe. i have, i think, among the best properties anywhere in the world. i just think it is really unfair when a guy says my father gave me $200 million, if you knew brooklyn, okay, in the 19 -- early 1980s, you understand this, chris. if you knew barak lyrooklyn in 1980s and 1970s, it wasn't $200 million, i can tell you. i do have brothers and sisters. but first call i got was from my sister and then a call from my brother. late at night.

and all he wanted to do is say, why are they allowed to say that? because he's a liar. this guy is a liar. used to call ted cruz a lie, but now i'll also call marco rubio -- he mentioned some companies and some of those companies are very successful companies. he said they closed. i sold some. for instance, i sold miss universe for a lot of money. got a lot of money for it. i sold others and the water company he mentions, he mentions the wine company, i have the biggest vineyard on the east coast. that's having to do with -- i make vodka all from my clubs. i have many clubs. we make vodka for the clubs. he said it was closed. it is not closed. >> go ahead. go ahead. >> if you want to become the nominee -- >> i would think about it. but, look, if for some reason it didn't work out for me, chris would understand this, i'm going back to what i do. i don't need to do this.

this is something i'm doing because we are going to make america great again. and politicians are not going to do that. these politicians and i know the people on the stage, they're not going to do it. marco rubio is a lightweight. he doesn't have the talent. he doesn't have the temperament, he can never make us great. >> i have a question for governor christie. >> do you know if you can write off the money you were using for your campaign? can you write that off in. >> governor christie, can i ask you a question. you, as you said, are a farmede former prosecutor. is there a position you would be interested in, attorney general, something like that? would you like to be his running mate? >> i am the governor of state of new jersey until january 19th of 2018 and i have every expectation that i will fulfill the end of my term. and then go into private life and make money like trump. that's what i intend to do. >> if you were offered a position would you take it? >> i haven't been offered any position. and i don't speculate on those

kind of things. i have a term in office until january 19th, 2018, and i intend to fulfill my term and then like i said, go off the private sector and finally beat my wife one year in our marriage, we have been married 30 years in march, i would like one time before i die to make more money in a year than she did. so that's going to be my goal after january 19th of 2018. >> thank you, everybody. we have thousands -- i have to go. we have thousands and thousands of people outside. you will be very impressed. thank you, all. thank you very much. thank you. >> john harwood, we learned just now that chris christie has endorsed mr. trump, we also learned that marco rubio is a lightweight and that mr. trump is an excellent athlete. what more can you add? >> among other things. >> among other things. >> rubio sweats. >> he sweats profusely. >> got to say, tyler, this endorsement announcement of chris christie endorsing donald

trump is a dagger to the rest of the republican field. just at the moment when republican establishment figures, elected officials were trying to rally the party around marco rubio, to get him to stop donald trump, here you have chris christie, one of the members of the so-called establishment lane in the race, former head of republican governor's association, keynote speaker at the last republican convention, mainstream republican figure, now coming out and giving his blessing to donald trump. not really about voters because chris christie didn't have a huge following among voters in the campaign. otherwise he would be in the race. it is about the psychology of the race, the super tuesday contest, just a few days away. donald trump has a lead. had a very brutal debate last night in which both ted cruz and marco rubio roughed up donald trump, went at him hard. this is a way for donald trump to seize control of the story

line, to be able to say, look, this very mainstream republican figure in the state of new jersey, a state that democrats are likely to win, is embracing me and let's take a listen to a little sound from that endorsement. >> what does donald trump do when things go wrong? he takes to twitter. >> that isn't exactly what we were expecting. that was marco rubio talking about donald trump's tweets instead, a different piece of sound. let's listen to that. >> what does donald trump do when things go wrong? he takes to twitter. i have him right here. let's read some. you'll have fun. lightweight marco rubio was working hard last night. this is true. the problem is, he is a chalker and once a chalker he is always a chalker. choker i guess is what he meant

to say. he spelled choker c-h-a-l-k-e-r. >> he was on fire this morning going after donald trump, had the crowd laughing, he was in good humor. he kept a smile on his face last night too. and endorsement from chris christie is the last thing the rubio campaign wanted to see as we head to super tuesday. >> i wonder if they shouldn't be surprised at all. the big wall street money went to rubio. he probably would love to shove the dagger in for that simple reason. two, back when the establishment thought they were in control of this process, the talk was there was going to be a woman as the vp -- as the vp on the ticket. now that the establishment isn't in control, that vp spot is wide open at this point. >> well, and we just heard a q&a from donald trump and chris christie, which made it very clear that chris christie is

quite open to the idea of serving as donald trump's vice presidential candidate. if he were to run on that ticket, that would be a big asset to donald trump. that would be a sign that donald trump would be playing to win in a general election, still an uphill fight for him, if hillary clinton is the nominee, she would be favored over donald trump, but no question that chris christie, his retail skills, his connections, his bridge to the republican mainstream would be a big asset for donald trump in the national campaign. >> john, there is so much going on with the sound bites and debates that we forget that politics is justsidency is goin down to math. there are a couple of states that matter, virginia, ohio, florida, maybe pennsylvania. do you think this chris christie endorsement is going to help trump in florida, virginia, ohio. those three states will probably determine who is going to be

president. >> yes, i think in swing states chris christie would be a boost to donald trump. i think there is no question about that. donald trump has got some big liabilities that he would carry into the general election in terms of the way that he with galvanize the democratic base, the strongly negative feelings that nonwhite voters have about him. he is weaker among better educated voters. and you can bet that college educated suburbanites would be a major target for democratic campaign against a trump/christie ticket. but, no, chris christie could help donald trump and take a campaign that would be uphill for donald trump and make it a little bit less uphill. >> let me bring in jim harwood and get your thoughts on this too. i want to bring in robert frank on the question of trump's tax returns. he maintained last night and just now that he will not release his tax return presumably 2014 tax return until an audit is finished.

then going back, many, many years, who knows. why doesn't he release earlier tax returns that are finished with the audit? >> that's one question. there is no reason he can't. the other question is, he can release the 2014 returns. if you go to a bank now and apply for a mortgage, they ask for your tax returns, if you're being audited, which happens frequently, you just tell the bank, it is pending an audit. but you release them to the bank. no reason why he can't do that here. i'm trump, i'm being singled out, if he watched cnbc this week, he would have learned that one in ten millionaires are being audited. that's twice the rate of 2007. for those making more than 10 million, it is one in seven. so he has more and more people like him among the wealthy that are being targeted, increasingly by the irs for audit. >> it would not be usual for the one in seven to be audited every single year. >> i don't think so. i think what he's talk ing about is you get audited and ask for

three or four years behind that. >> may be the deductions he claims are on his tax return that kick out his tax return. he seemed to suggest john harwood that it had something more to do with being singled out for personal reasons. >> he suggested that. he said lots of stuff, but you know, donald trump says stuff and it doesn't matter five minutes later. he said at one point, maybe because i was a strong christian and then later in interview , he said, probably not that. maybe something else. but here is why donald trump doesn't want to -- or won't release those records immediately. a, he doesn't want to. and, b, he doesn't have to. this is a hail mary pass cook up in the last couple of days by mitt romney who on behalf of the republican establishment decided to throw out something to try to, you know, trip up donald trump. and it is not like his rivals have been demanding these for months. this issue just arose out of

nowhere and it is not a scenario designed to immediately put tons of pressure on him. >> and less consequential now that the dagger was delivered by christie to the other presidential candidates as you say, john harwood. i'm curious, the barn door is open now for more establishment gop members to now endorse trump without too many repercussions. >> absolutely. and, you know, chris christie -- excuse me, mark yco rubio is th dominant choice among mainstream elected republican officials in washington and they have been holding back and now rallying behind him to try to stop trump. trump didn't have any big mainstream figures like that and the fact you break -- you breach that dike and you get one coming in, the hope is that you'll get others who say, hey, i figured it out, he's going to be the nominee, i'll go jump on that train too. and by doing that, again, i'm talking about the psychology of this, if you change the psychology and all of a sudden

mack a bunch of people who are resistant to you believe you're going to be in power anyway, they're going to just how they look at you, interact with you and talk about you. >> john, thank you very much. john harwood in washington, i'm sure we're going to revisit this for the rest of the day. robert frank, thank you as well. it is -- let's not forget it is friday. it means it is rig count day. rig counts falling for a tenth straight week. according to baker hughes, hi, america, rig counts fell 13 last week. but another decline, tenth straight week, oil not moving that much. i think your comments from the nigerian oil minister moved oil a little bit. it ticked higher. >> after we ran the sound bite. >> melissa interviewed the nigerian oil minister, he made comments about the likelihood of a freeze. rig couns rig counts down 13. >> the over/under.

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welcome back to "power lunch." michelle caruso-cabrera here. gold price closing now. lower by $18.50. that's a decline of 1.5%. 12.20 per ounce. silver is lower today by 46. copper is higher. palladium and platinum in negative territory. we have seen gold move higher on days when the stocks are lower and just the opposite and seem to have that occurring today.

>> bond market with rick santelli at the cme. >> even though the auction was a while ago and delayed from yesterday, you see the drift higher. really not impeded in any way by the really, really poor auction. if you look at a december 31st, 2014 start to tens, you can see the technicians in hindsight were right. we held the 160s, makes sense. see the two double bottoms on the chart. remember, tens are up two on the week, up five on the day. know who the winner is up on the week? two years up six beeps on the week. last chart, this is a february 8th this year start to the dollar index. the pound is getting pounded. the euro has slipped many handles. the beneficiary, of course, the dollar index, which had quite a nice turn around in the remaining days of february. mellas why leissa lee, back to

>> we'll tell you what chipotle is doing now to get customers to come back and asking analysts if that will work. that's next on "power lunch." thanks man. imagine if the things you bought every day... ...earned you miles to get to the places you really want to go. with the united mileageplus explorer card, you'll get a free checked bag, two united club passes, priority boarding, and 30,000 bonus miles. everything you need for an unforgettable vacation. the united mileageplus explorer card. imagine where it will take you.

so what else is new? humm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird.

welcome back to "power lunch." i'm tyler mathisen. a check on the market. the dow, the s&p and the nasdaq posting slight gains there. really the most minor of gains for the industrials. little bit greater in percentage terms for the s&p and the nasdaq composite. the average is up about 2% this week overall. oil meantime up 5% this week. there you see it at 33.27, up 20 cents on the day. brent crude up 30 cents. look at the widely held stocks. alphabet, basically the company formerly known as google, still owns google, $724. down $4, about two-thirds of 1%. apple up about a fifth a percent as its battle with the fbi goes on as does its annual shareholders meeting out in cupertino. microsoft off about 2% and jpmorgan chase up one and a

third. to sue herera for a news update. >> as you saw, just a short while ago, here on cnbc, new jersey governor chris christie endorsing donald trump for president saying he will do what needs to be done to protect american people and create jobs. and gives republicans the best chance to beat hillary clinton. cedric ford, the man who stormed the kansas factory where he worked and shot 15 people killing three before he himself was killed had just been served with a protective order that probably triggered that attack. the ceo of excel where that attack took place had this to say. >> our hearts go out to our employees and their families who are enduring this tragedy. we are fully cooperating with the law enforcement agencies and the red cross. our internal teams are fully engaged in crisis management.

>> fifa electing jiani from switzerland to succeed sepp blatter as president. he defeated his nearest rival the sheikh of bahrain in a second round of balloting collecting 115 of 2 07 votes cast. even flow recalling about 56,000 combination booster seats over a concern that children may access the harness adjuster button and loosen it. it recalls seats made before july 29th. that's the cnbc news update this hour. back to you, brian. >> sue, thank you very much. you're going to look right now at a long line of customers. those long line of customers are waiting to order burritos at chipotle. we shot some of this footage yesterday. look at that. does this look like a restaurant just suffered a nationwide safety scare to you?

>> on a normal day before the scare, there will be a line going all the way to the door, you know. the scare happened, it was a ghost town in here. now that everything is slowly starting to come back to play, got a good crowd. >> if the health scare was a lot bigger, i would stay away from it. as of now, i'm good. >> you see how they make the food there in front of you. that gives me some kind of faith, because there is transparency in that. >> i didn't find it too scary to come here. >> a big part of the comeback plan is free food. one of our producers who lives nearby got this coupon in a mail. free chips and salsa with a burrito bowl -- >> chips and salsa free, not the burrito, which is pictured under free as in free. >> free means free. this is free. >> the chips and salsa are free. >> i have a feeling that melissa le cou

lee could get a free burrito. cmg up 10% in the past month. bob darington, bob, okay, it is great news. we saw long lines. arguably it is one location. are you sensing that people are back en masse at chipotle? >> when you look around the country, clearly the east coast and west coast have been the most negatively impacted by all the foodborne illness scares. here in the south, the midwest, you know, i don't think trends have been materially negatively affected. but the closer you get to the points and where those incidents occurred, that's where the company is working hardest to try to win back the customers. >> giving stuff away is nice when you're the recipient. your profit margin may be zero. is this a good strategy or can we expect a margin hit for chipotle as they have to discount, promote, et cetera. >> that's fair.

if you remember, the company provided guidance for this year. which is lower store level margins and lower earnings guidance. while they don't provide a specific number, they have made us all essentially think through the numbers and slash our numbers pretty significantly. the most important thing, brian, is they need to win back traffic trends. they need to change consumer behavior. and literally i think it is fair and reasonable to, you know, use that carrot to ultimately to try and drive traffic back in the door. we want to be clear it is free chips and salsa after you buy a burrito. so the chips and salsa to them costs less money and are extremely high margin products because they're already made. that's not my question. my question is isn't it way too early to even see any progress in terms of the customer traffic that is going back to chipotle. you, as i recall, bob, got on

the bandwagon quite early on into the e. coli scare saying things will turn around very quickly and here we are today saying are things even turning around right now. >> you bet. the problem, melissa, is that if you remember, when they had on top of the e. coli, i think they had three different announcements of incidents scattered throughout the country. and then on top of that, they added on the norovirus incident in boston. and literally that kind of broke the back and when you throw on top, just for the icing on the cake, the u.s. justice department doing a criminal investigation into the company's reporting of these incidents, all of a sudden you wind up with a reowned negative tone to the sales and earning. the most important thing they need to do now. i think they -- management understands. make it safe, make it desirable to return. and then ultimately put the carrot out there and try to change behavior. over time, you know, ultimately that could win back.

>> how long -- you say over time. how long, just guessing, how long before the foot traffic, the same store sales get back to where they were prethe scares. >> that's a real tough call. part of the reason i say that is because, remember, if in the fourth quarter, their comp trends were down 14.6%. we're modeling the traffic will be positive against that number in this calendar year. however, we're modeling comps up 8 to 10%. which says they're still not back to 100%. it may be the middle of next year if they're fortunate if they're lucky to get back to 100%. >> bob, we'll teend it here. thank you for joining us. intere there is two coupons.

i want to get out there, go for the free burrito -- we do have some news here, united technologies is halted. don't have any more details than that, but halted. last trade 98.44. >> for news pending? >> we don't know. doesn't look like it is volatility because the stock is not at last trade only up .4%. this is not a live quote. this stock has been halted. this after basically it said there is no deal. there won't be a deal with honeywell at this point. >> they have been looking at some divestitures, correct? or getting rid of some units -- >> the stock is up, but i think what we're waiting to see is if there was -- it is a halted for news pending. so let's see what the news is. we're wondering if the news that david faber broke last week -- was it only last week or this week? it is friday. it could have been this week. >> big week. >> they honeywell and united technologies had had merger talks and come out and united

technologies says no way, too difficult with the doj. we'll wait to see what is going on. to josh lipton with more on apple's investor day. >> apple shareholder just wrapping up here in cupertino, california. apple ceo tim cook was here. a lot of support for cook in this room. he came into the room to a standing ovation. some of the directors were in the room as well. al gore, bob iger were in attendance. he addressed the big issue clearly on top of everyone's mind, which is this fight between apple and the u.s. government, cook mentioned, listen, this is a hard fight, a tough fight, but just because it is challenging doesn't mean they're prepared to shy away from it. and he found some new allies in the room as well. representatives here from the electronic frontier foundation, they stood up and noted they'll be filing a brief in support of apple. the reverend jesse jackson was here, in the room, talked to the media afterwards, called cook a

man of integrity and character, said he supported cook in this fight with the u.s. government this and had broadened out beyond apple. a number of tech giants, microsoft, facebook, google's parent company, alphabet, those three companies filing a joint brief in support of apple. besides that news, it was a standard shareholder vote, directors were elected, the auditor ratified compensation, but the story of the day was that fight. inside and outside the room, support, the shareholder i talked to, came from all over. i talked to one guy who drove eight hours from l.a., another guy who came in, flew from nashville, a lot of support for cook. back to you. >> outside, though, of this fbi issue were there questions about apple's pipeline of products because even without this issue, a lost peopt of people saying as a stock difficult to invest and the stock has not gone far and there aren't any promises right

now of a firm product line in the future beyond the iphone. >> beyond the iphone, he did get some questions about that product pipeline. apple is different than its rivals as you well know. doesn't telegraph the moves like maybe some of its competitors do. when he was asked, for example, about that much reported electric car, he simply said, listen, remember that feeling you got when you were a kid on christmas eve, how excited you were, before opening a present. you have that feeling for a while. not feeling too much in terms of what could be coming, but did make the case as he has, listen, their product portfolio is strong. you talked about the iphone, the growth they have seen here, but also, listen, a lot of users selling older models and potential head room, he talked about that record number of android switchers, talked about the growth in china. said, listen, there may be hiccups from quarter to quarter, long time bullish in china. chinese consumers love our products, 61 billion in revenue

in greater china last four quarters. name another company he said that can boast that and future markets like india, they get 1.5 billion of revenue last year but he sees india today as what china was ten years ago meaning a young population and a population that is rapidly moving into the mid le class. he reaffirmed what he said about india, they're putting a lot of resources into that area. >> very quickly it would be interesting to know, i do not, what al gore who spent many, many years in government thinks of the tussle between the fbi and apple. has he been heard from on it? >> i don't believe so, tyler. al gore was in attendance. i don't believe he's made a comment on that. >> i haven't seen anything. >> i'm sure -- no, i have not seen that. listen, it is a difficult position. we have issues of privacy and security on one hand, national security on the other. but tim cook today, in front of his board, which included bob

iger and al gore made the case this is a tough position, but one they're prepared to stand by. this is going to be heard in riverside, california, march 22nd, the court date. >> all right, josh, thank you very much. let's look at the dow if we could. it is now slipped into negative territory as has the s&p 500 at the last flip of the chart there. now basically flat. but the dow slipping ever so slightly -- >> biggest drags are walmart, coca-co coca-cola. >> big news for the bulls, financials are participating in the market. they're still up by about 1.1%. we are seeing a lot of these safety trades sort of pull back, consumer staples, you mentioned some of them in the dow dragging the dow down, down by 1.6% and utilities down 2.6%. >> back to apple for a second. i would love to hear from our viewers and audience, which is basically this -- >> hold on.

>> -- tom. and chris knute, can't miss him. we're here to talk about the great things you guys are doing at this facility. but before i begin, i do want to say a few words about yet another mass shooting we had to endure. you may have heard a gunman in heston, kansas, this morning i spoke with mayor kauffman and expressed our deepest condolences for the victims, their families and the community as a whole. this comes after last weekend's rampage in kalamazoo, michigan. where six more innocent americans were gunned down.

and these acts may not dominate the news today, but these are two more communities in america that are torn apart by grief. and i felt it was important for me to say something today because somehow as i said before this becomes routine. these sort of mass shootings taking place. we cannot become numb to this. and anybody who says they want to keep the american people safe has to care about this because it is happening in far too many towns, and affecting far too many innocent americans and there are some things we can do about it. and right now this congress may not have an appetite to do something about it, but we need one that does. as long as i hold this office, i'm going to keep on bringing this up. even if it is not getting the same attention that it should. and i wish i didn't have to keep

on talking about it. lord knows i wish i don't have -- i wish i didn't have to make these phone calls and comfort families. the real tragedy is the degree to which this has become routine. so i hope all of you pay attention to this, i hope the media pays attention to this. once a week we had shootings and it doesn't dominate the news. that's fgot to change. so, thank you for allowing me to talk about that for a moment. the truth is, though, that even when we got some real challenges out there, the reason i'm here today, is because save is

telling a story about the amazing work that people all across this country have done to bring america back from one of the worst financial crises in our history. so think about it. sometimes people also forget where we have been and if you forget where you've been, sometimes you don't know where you need to go. seven years ago, the ground we were standing on was an empty plot of swamp land. i don't know if gators make it up this far, but, you know, it was not some place you would want to be wandering around. it had been ignored for more than a decade since the navy base here closed. back then all around us the economy was in a free fall. 800,000 americans were losing their jobs every single month. that's almost the entire population of jacksonville joining the unemployment line every few weeks.

families lost their homes. families lost their savings. and people here in florida were especially hard hit, the unemployment rate here in florida hit 11.2% which was even higher than the national average. fast-forward today. businesses like yours have created jobs for 71 straight months. 14 million new jobs overall. we cut the unemployment rate by more than half. nationally the high was 10%. it is now down to 4.9%. and here in jacksonville, it is even lower. our auto industry just had its best year ever. we created more than 900,000 new manufacturing jobs in the past six years. our high school graduation rate is at an all time high, nearly 18 million americans have gained

health care coverage though here in florida there are a whole bunch of folks who haven't because the state hasn't expanded medicaid. that's another topic. businesses like save are leading a clean energy revolution creating jobs and making our planet safer and more secure at same time. now, you don't hear a lot about this from the folks who are on the campaign trail. they're spending all their time talking about america. i don't know when it became fashionable to do that. >> we're going to break away from the friepresident now. an update on what is going on at united technologies which is still halted. to sue herera. >> thank you very much, melissa. basically utx put out a presentation. the stock is still halted. but in the executive summary it is basically a reiteration what he said on cnbc, what the ceo

said on cnbc. that utc opposes a combination with honeywell. and create insurmountable, their word, conditions to complete a transaction. the ceo says he sees significant regulatory challenges not only in the u.s., but also in the eu, china, brazil, canada and elsewhere. and there be with a negative impact on customers and negative scenario as to do with financial, operational, customer and talent impacts regardless of whether or not that deal was eventually completed. united technologies looks like it just started trading again. and that's the year to date -- it is still halted. that's the intraday. so we'll go back to you guys and we'll keep you posted when the stock does open up. >> official statement from utx on honeywell's proposal. it donald trump, who is back on stage again after being endorsed by new jersey governor chris

christie. >> a practical monopoly because companies aren't allowed to come in very easily. they practically can't come in. so they said, oh, be more specific. i don't are to be specific. what is going to happen is you're going to create open bidding by getting rid of the borders around each state and the lines restrictive lines around each -- you are going to have so much competition. you're going to have so much bidding that you can't really say it is one plan. you can have hundreds of different options, you can have hundreds of different plans, it is going to be so beautiful. and you're going to pay far less money. far less money. so i want to just mention just a couple of words about senator cruz, who actually was -- i thought -- i thought -- i thought he was better. you know, last night i thought the deal of the night was when i

looked over to rubio and i said, you remember, you're a choker. and we don't want chokers in our administration. i can tell -- i said, you're a choker and you're a liar. and i have had, you know, i had a lot of difficulties with ted. he does lies. i dealt with much tougher, a guy like rubio is a baby. a guy like ted is tougher. he's tougher. he's actually smarter in all fairness. ted is smarter. i have to give that -- he's a smarter person than rubio. but i deal with people. last night it was mentioned, by the way, mentioned, my father gave me $200 million, i wish. i wish. i would be right now worth $500 trillion if that were the case. first thing i did, i get back, i get a call from my sister, a fantastic person and then a call from my brother who is a fantastic person, and they said, hey, donald, that's not true. why did they say that?

and he copied it, you have the failing new york times, it is a failing newspaper, i hate to tell you, like, seriously failing. and they wrote an article and put something in about $200 million. believe me, i get very, very little and i built it into many, many, many billions of dollars that i'm very proud of it. but -- i just -- i just think -- i just think we have to correct -- we have to correct the record. thank you. i love you. thank you. >> trump, trump, trump, trump, trump, trump, trump, trump! >> it's rubio!

unbelievable. but we like to correct -- we like to correct the record. but, you know, i spent a lot of time in laredo, texas, right on the border. and i was invited by the border guards, and by the way, i got endorsed, talk about chris, by sheriff joe arpaio. and the one thing you know about sheriff joe, he's the toughest guy on the border, no games to be played with sheriff joe, who puts pink you know what on his people that are there illegally. sheriff joe does not play games. everybody wanted his endorsement. but the toughest one on the border was endorsed by sheriff joe. and i think it is incredible. i was called by our border patrol, unbelievable people. i got it know him well.

and they said, mr. trump, i was running, doing well, since i started this whole thing, i've been practically number one for the whole trip. practically number one. and now we have big leads. please, texas, let's win texas. i want to win texas. i was called by the border patrol and these people are incredible. and they want to do their job. they want to do their job. that's why they call me. they say would it be possible for you to come to texas to laredo? i said, well, i think so, yeah, fine, i'll do it. i went to laredo and met with a lot of the border patrol folks, some of the top people. and, man, are they -- they're just incredible, smart, tough, great people. by the way, you know who else are great people, our police are great people. they're being abused.

our police are being abused. our police are incredible people. in fact, i just took pictures backstage, what a group of people you have. they're incredible people. so i just want to -- we have to put out the plug every once in a while because, you know, one bad incident, whether it is a mistake or somebody was just a bad apple, and played for weeks and weeks on the news, and the thousands and tens of thousands of great jobs that they do, they don't get appreciated. let's hear it for the police. so i'm in laredo, and they're telling me how sad it is because they can stop it. we need the wall, we want to have the wall, we want to stop the drugs from pouring across. we're doing to stop the drugs. and there is going to be a real wall, a real wall. i'm the only one who knows how

to build it. all the politicians, all talk, no action, nothing gets done. when i said self-funding before, the beauty of that is -- the beauty of self-funding is that the insurance companies, the drug companies -- >> wanted to bring you up to date on the utx situation. it resumed trading after being halted. you see the stock is trading down 11 cents. 14 cents, .1%. back to donald trump. >> jeb bush had $150 million. what a waste of money. i would imagine at some point between him and romney they'll be supporting rubio. do you think? i would imagine. romn romney. how about this beauty. runs one of the worst campaigns in the history of politics, he should have beaten obama easily. and for two months he disappeared, nobody knows where he was and say what you want, obama was on jay leno, david

letterman, every show and romney was like a lost soul. i don't know what happened to this guy. and then he comes out and tells me about my taxes. and actually if you know the real story, harry reid shamed him and made him look like a baby and harry reid pushed him and pushed him and really made him look so stupid and weak. when did romney file his return? what is today's date? today's date is what? come on, tell me. what? okay. so, you know when romney filed had his return, september -- september 21st. that's a long time from now. this guy -- i endorsed him. about two weeks late, i said he's never going to win. number one, when you walk into a stage, you cannot walk like a penguin. he walked like a penguin. i said this is a problem. somebody tell him, take some steps. anyway, romney turned out to be

a disaster. i know he'll support rubio. he probably has no choice. honestly, if he wanted to support me, i would not accept it his support. i admit it. because -- because we have to be honest, right? we have to be honest. and i will say this, just to show you great loyalty, i supported john mccain and we lost. i supported mitt romney, and we lost. this time i said i'm going to do it myself, okay? big difference. so the border patrol is incredible. and they're told to stand back, stand back, let the people walk in, let them go wherever they're going to go, we don't have a border and if you don't have a border, we don't have a country, folks. we don't have a country. so we're going to have borders and they're going to be serious

border and very, very powerful borders. and in the case of our southern border, we'll have a wall. it is going to stop. by the way, we are going to have people come into our country, but they're coming into our country legally. legally. we want people to come in. we want people to come in. we want people to come in. but they have to be the right people. we don't want people that have been here, look at kate. beautiful kate. in san francisco. illegal immigrant, five times came across the border, and shot kate. jamil, father became a friend of mine, an incredible father and incredible guy, his son was an unbelievable young boy. good student. going to go to college on a football scholarship. maybe stanford. and he was shot in the face three times by a guy that did it because he was just told to

shoot somebody. that's the only reason they did it. just got out of jail. and you have the female veteran, 65 years old, recently in los angeles, raped, sodomized, and killed by an illegal immigrant. we're going to be different, folks. we're going to be strong. we're going to be smart. we're going to be tough. we're not going to play games anymore. we're not going it play games anymore. not going to happen. not going to happen. so we're going to be the strongest on borders and we're going to set the example for other parts of the world. and we're not taking in syrians that we have no idea who they are, where they come from. and we already have taken in thousands. thousand s. and we don't even know where they are. but you have no idea. i spoke to the top law

enforcement people and they said, mr. trump, they don't have papers, they have absolutely no identification. and do you ever notice the migration -- i want to help people. and i say you build a safe zone and i'll get other people to pay for it because i don't want to pay for if it. we owe $19 trillion. we're not paying for it. but we'll get the gulf states to pay. they have more money than anybody and they're not spending their money. we have got to loosen up their wallets, folks. i'm very good at getting people to do that, believe me. i like the idea of a safe zone. but do you ever notice the migration comes across and you look and there are so many young men, right? i say, where are the women? where are the children? now, they're there, but not like they should be. so law enforcement is telling me -- is that a protest? oh, good. turn the cameras. turn the cameras. good.

i love protesters. look at this. look at this. we have 10,000 people here today. look at this. is that a protester? please be a protester. the only ways we can get the cameras turned -- the only reason they turn the cameras is if there is a protester because that's a bad thing, right? i'm going to develop my own protesters. but look -- it can't be a protester because those cameras won't turn. they won't turn. i'll tell you what, i think the media is among the most dishonest groups of people i've ever met. they're terrible.

the new york times, which is losing a fortune, which is a failing newspaper, which probably won't be around that much longer, but probably somebody will buy it as a trophy, keep it going for a little longer, but i think the "new york times" is one of the most dishonest media outlets i've ever seen in my life. the worst. the worst. the absolute worst. they have an agenda that you wouldn't believe. and they're run by incompetent people. they are totally incompetently run. washington post, i have to tell you, i have respect for jeff bezos. but he bought "the washington post" to have political influence and i got to tell you, we have a different country than we used to have. we have a different -- he owns amazon. he wants political influence so that amazon will benefit from it. that's not right. if i become president, oh, do they have problems. they're going to have such problems.

and one of the things i'm going to do. this is going to make it tougher for me and i never said this before, but one of the things i'm going to do if i win and i hope i do and we're certainly leading is i'm going to open up our labor law libel laws so we them and win lots of money. we're going to open up those libel laws. so when the new york times writes a hit piece, which is a total disgrace or when the washington post, which is there for other reasons writes a hit piece, we can sue them. with me, they're not protected because i'm not like other people. but i'm not taking money. i'm not taking their money. we're going to open up the libel laws, folks, and have people sue you like you never got sued before.

we have many things to do. we have many, many things to do. when i came down on the escalator with my wife melania, it was june 16th. and i said, look, let me tell you, it is not easy running for president. you get low lives like a guy like rubio saying horrible things, horrible things. and who needs it. this is a low life. and cruz lies, but at least it is reasonable lies. this other guy says terrible things. and i will tell you, when you do this, and when i agreed to do it, it takes guts to do it. it takes guts. especially if you're not a politician. i'm not a politician, thank goodness. i guess now i am, but i'm not. i don't want to be a politician.

and when came down the escalator, there were cameras, look at all the cameras back there. hello, folks, how are you doing, you son of a guns. we had cameras like the academy awards. looked like it was the academy awards. i said to my wife, i looked at the iran deal, which is one of the great insults in the history of deal-making, we give them $150 billion, we get absolutely nothing. we get nothing and they attack, they take as hostage ten sailers and the only reason we got them back, why did we get them back, money wasn't paid, it went in two days later. the persians are great negotiators. they gave them back. they would have kept them otherwise, unless trump was president. they wouldn't be keeping them. they wouldn't be keeping them. if i was president, the hostages would have been released four years ago. because i wouldn't have negotiated until they released

the hoch tstages and i would ha increased the sanctions and we would have had those hostages within 24 hours years ago. want to tell you one other thing, the second amendment is under siege. guns, guns, guns. it is under siege. and every time you have a mentally disturbed person, like you had last night, and like you will have, they immediately look to the guns like the guns pull the trigger. the guns do not pull the trigger. and we are going to protect your second amendment 100%. 100%. if you look at what happened, if you look at what happened in california with the 14 people, killed by two people radicalized, she probably

radicalized him, how about this country. we can't even get the cell number. can't open the cell. i like safety. i want security. when it comes to terrorists, we got to knock them out, folks, knock them out and knock them out bigley. big, big, bigley. but when you look at what happened in california with the 14 people and many people in a hospital that are in very bad shape and these were people that gave the two radicalized, the couple, this couple, so-called couple, i don't even like to call them a couple, you know what i would like to call them, it gave this couple anniversary parties. and baby parties. and showers. these were people that -- they were friends and they went in and blew them away and then you look at paris, where you have 130 people that were killed, many people in hospitals, gravely injured, these animals just walked in, took their guns and said, bing, bing, bing, you get over here, bing. if we would have had guns, where

bullets flowed in the other direction, you wouldn't have had that big problem. it would have been much smaller. so we're going to protect our second amendment. and it is so true. take paris, take california, if, like you -- you're a tough cookie, this guy here looks like an ex-vet, if a couple of you, you right over there with that big, beautiful beard, if these guys that i have to pick a woman, that's right, you, raising your hand, she's gone crazy, she wants to carry a gun. but if we had a few people, right? if we had a few people with a gun on their side, or a gun around their ankle, so when these animals start shooting, the bullets start going the other way, you know, paris is probably the toughest place in the world to have a gun, except if you're a bad guy, then there is no problem. you just have a gun.

if we had people, people in los angeles, would have been a whole different story, folks, would have been a whole different story. so just remember, your second amendment with me is protected. your borders are protected. common core -- common core -- common core is out. it is out. in the top 30 nations, with 30 being by far the worst, in the world for education, we're number 30, but we're number one in course per pupil by the factor there is no second. we're number one. we're number one in course, we're last, you have norway, sweden, denmark, china, you have lots of places, you have some countries you never even heard of are ahead of the usa. not going to happen anymore,

folks. we're going to get up that list. we're going to start climbing up that list. you know, the american dream is dead but we're going to make it bigger and stronger and better than ever before. remember that. but it is very hard for a person to live the american dream without good education. so we're going to work very, very hard. so common core is out. it is dead. common core is dead. we'll bring it locally and i've seen the local -- it is unbelievable. the parents and the teachers and everybody there is love in the room and it is a beautiful thing to watch. it is a beautiful thing to watch. another thing we have to talk about, i've had tremendous support from the evangelicals. and from christians. i've had tremendous support. and, in fact, pastor jeffers is here now. where are you?

where -- come here, come here, come here. i saw him -- get him over here. he has been so supportive. i didn't meet him. i've seen him on television for years, i always liked hmm a lot. one day i'm listening to him and he said, donald trump may not be perfect, but he's the best lead erk the strongest guy, he's going to knock out isis, do great for our economy. he may not be perfect, i didn't like that, but that's okay. but he's going to be our best president. you come out -- get him up here. i love this guy. i'm just watching him. and highly, highly respected and jerry falwell jr. was so incredible. and since i got -- and many others. the reverend paula white, so many others. we had such support. we have unbelievable support from sarah palin. she is incredible. she's a great person. come on up here, reverend.

pastor jeffers, is it true -- i didn't know him and i love him. say a few words. >> let me just say briefly i know three things about donald trump. number one, he sincerely loves this country. you know, he has 10 billion reasons he doesn't have to do this. but he does it because he wants to make america great again. the second thing i know about donald trump is that he is truly pro-life. i have talked to him at trump towers, he believes in protecting the unborn. that is an issue we as christians care about. and i'll tell you what, some of you who say, well, i don't know if his pro-life conversion was real, let me tell you something, hillary clinton doesn't claim any pro-life conversion, if you go for hillary clinton or bernie sanders, there is no doubt you're going to have the most

pro-abortion president in history. but here is what i finally know about donald trump. donald trump cares about and loves evangelical christians. you know, one time when ronald reagan was running for president of the united states, the first time, he met with a group of evangelical leaders and he said, although you can't endorse me, i want you to know i endorse you. and i have met -- i have met with mr. trump on several occasions. and i can tell you from personal experience, if donald trump is elected president of the united states, we who are evangelical christians are going to have a true friend in the white house. god bless donald trump!

>> wow. how about that? how about that? i'm he telling you, i saw the pastor on television like a year ago and he was saying all these good things. i never met him but i was watching him. i said, we have to meet this man. and i just have such great respect for him. you can see that. thank you very much. that's really amazing. i'm going to give the pastor a little bit of a present. what i say, i mean. i think it is very important for the christians in the room. christianity is under siege. every year it gets weaker and weaker and weaker. and i had a meeting with various ministers and pastors about two months ago. and i'm pretty good at figuring things out. and i sat with him.

and some of them said, we love you. we want to endorse you so badly. but we're afraid we're going to lose if we do that our tax exempt status. and i said, what is this all about? that takes you and it makes you less powerful than a man or woman walking up and down the street. you actually have less power. and yet if you look at it, i was talking to some, we probably have 250 million, maybe even more, in terms of people. so we have more -- we have more christians, think of this, than we have men or women in our country. and we don't have a lobby. because they're afraid to have a lobby because they don't want to lose their tax status. so i am going to work like hell to get rid of that prohibition. and we're going to have the strongest christian lobby and it is going to happen. and it is going to happen.

this took place during the presidency of lyndon johnson, and it has had a terrible chilling effect. when i said that there has to be a temporary ban on certain people, coming into this country, we have no choice. there is something wrong. there is something really wrong. and when i said muslim, i was met with furor. if i would have said christian, people would have said, we can't do anything about it. that's going to end, folks. we're going to say merry christmas now on christmas. we're going to start going to department stores and you're going to see big, beautiful signs that is going to say merry christmas and happy holiday.

and we're going to have a big, big, big -- a lot of fun and get rid of that and work very hard. that's one of the first thing i want to do, get rid of that. if we use that power, we're going to start going up, up, up because we are being decimated. so just remember that, just remember i said it. pastor, it starts here. you like that? what i just said? he's happy. that's the biggest smile i've ever seen on his face. that will do it. you can hold me to it, pastor. all right. you're responsible. so, again, we're going to have a great country again. we're going to have a smart country again. we're going to have tremendous border and tremendous strength and people are coming in, but we're going to have real border. we're going to have unbelievable trade deals. i have carl icahn, some of the best business people in the world, we have political hacks negotiating these massive trade deals. the biggest deals in the world.

we have people that don't have the slightest clue. we're going to get rid of obama care, get rid of common core, we're going to have local education. we're going to protect our second amendment. we're going to protect christianity. we're going to be back. and, folks, i'll tell you, it is very simple, my whole theme and your whole theme because we're altogether, i'm just a messenger, our whole theme is make america great again. that's what's going to happen. we're going to win a lot, folks. we're going to win all the time. thank you very much. i love texas. i love texas. get out there and vote. get out there and vote. thank you. thank you. thank you, everybody. that is donald trump wrapping up a rally in texas. earlier today right before he was out with his supporters, he

was joined by new jersey governor chris christie who endorsed him for president. mr. trump, that was the first time that i have seen a full version of his stump speech, which goes a lot of different places. we're going to be great, smart, unbelievable. and maybe most tellingly of all, senator kay bailey hutchison of texas, we're going to have a big lot of fun said mr. trump. welcome, senator hutchison. glad you could be with us. >> thank you very much. i heard it for the first time as well. very interesting. >> that's one way to put it. let's cut to the chase here. the primary in your state is tuesday. who is your horse in this race? >> i don't have a horse in the race. because i worked with you all, i haven't endorsed anyone. i've been watching closely. and i think we're down to probably a three-person race.

and, you know, i think it is really up for grabs in texas. though i think cruz is ahead for sure. he's the hometown senator. but i think there is a lot going on. i think it is not decided yet. >> how do you feel as a member of let's just use the phrase out there, republican establishment. you're a senator for four terms. how do you feel about the fact that the establishment is under such attack, most especially by mr. trump. >> i think that's a great question because i am part of the dreadful establishment. and i think -- i understand the frustration, i do. people are very frustrated, especially the middle class and people working so hard and not getting ahead. i do understand that. i think what's missing is that

once there is an election, you have to work with what you have. as george washington said, i have to go into battle with the army that i have. and you get the most you can. ronald reagan said it, he did exactly that. he worked with everyone who was elected. and he moved our country forward in the right direction. our country is going in the wrong direction now. if we can -- after the election, come together, and hopefully we have wins in congress and the presidency, we got to change the direction of our country. but we have to do it within our constitutional system. that's what i think is missing. >> it is michelle here. i'm going to assume for now, i don't know if it is a good assumption or not, hillary clinton is at the top of the democratic ticket when we come to the final race. if donald trump does get the gop nomination, do you think he can beat her? >> i think things are so

different now in our country and i think this election is going to be different from any that we had certainly in my lifetime. and, yes, i think the republican candidate could win. whether it is trump, rubio, cruz, kasich, carson, i think any of them can win because -- if they talk about what they want to do differently from where our country is going right now. national security. >> where are we in this country right now, in a broader perspective. another mass shooting yesterday in kansas. getting to be a weekly event. bernie sanders promoting former democratic socialism and donald trump throwing water around making fun of marco rubio's apparent propensity to sweat. where do we go in this country? where are we? >> fair point. what we have to look at is what is affecting our country the

most. it is the economy. it is the stagnant economy. it is the oppressive regulatory tax re jim that is holding our small business people from being able toi grow. the justice department is fining them instead of saying we want our companies to succeed, we want our banks to lend, business toio and job grow and jobs to b. that's number one. number two is national security, our place in the world. having our allies trust us and enemies think they better think twice before they fool with us. >> i feel like we're at a breaking point. forget the fact as a journal is. everybody is angry. where do we go in this country? how do we bridge this? it is so depressing. >> i agree with you.

and i think we have got to go back to what built our country. it was a moral standard. and, you know, if somebody is on a blog, and it looks to me like bloggers are never happy, always critical. they're doing it anonymously. if you're going to criticize someone, say it to their face. i think we would have a better tone, civility, and anti-establishment movement is not helping the civility in this country, it is a rhetoric that is harsh and doesn't have solutions. it has criticisms. we need to go back to the moral standard that built the country. >> senator, as you listen to mr. trump, i'm interested to hear you, like me, that was the first time you heard the full trump there, as you listen to it, as a member of the gop, do you find yourself nodding your head or shaking your head? >> both.

both. some of the things he said are -- i'm right with, and some of the things he said i think will hurt us internationally. >> identify which is which. >> what he's saying about freedom, the second amendment, i think the things he is saying about job creating, about our borders, having -- what he's saying is legal immigration, yes. illegal immigration, no. and those are the things that we agree with. but when he goes off into criticizing people personally, talking about marco sweating or those kinds of things, that's -- those are red herrings. that feeds into this social media that is so negative. so you are finding things that you think he's right about. but you also have to make the transition into the big picture, which you have just discussed and that is, okay, how do we fix it? what are the solutions?

give me the details. i look at paul ryan trying to lead the house of representatives. and he wants to get back to the issues. how can we have a balanced budget? so people can make investments, get loans. he's talking about what really matters. entitlement reform for heaven stake sakes. all the things i heard talked about in these debates is cutting spending. how are you going to cut spending? you cut some little minor part of discretionary spending. you got to fix entitlements. >> those are all big issues. but i think that when the audience listens to donald trump, they really like it when he makes fun of marco rubio sweating. he makes reference to the water that he -- >> what is that saying? >> he seems to have tapped into some kind of thing. >> in your home state, you must know ted cruz very well.

what do you think of him. does he have to win tuesday? >> well, first of all, yes, he has to win. just like marco has to win florida. i think -- i believe that you have to carry your home state where people should know you best. and i think that like everyone, i think there are good points and bad points. just like there are with trump and with rubio and others, no one is perfect here. and i think we know what -- pretty much where these people are and what they are. so we're going to have to make the choices of who is going to carry our country forward with a basis of solution getting instead of criticizing, criticizing, criticizing. and i hope that our electorate is beginning to now see a smaller field and who could really lead this country, who will be creative, who will know

what is really wrong that has to be fixed. and our country is not going in the right direction. i think that is why there is so much interest in this election. and i think when we get down to the end, they're going to be very different visions for how we achieve what built this country, which is that you are rewarded for hard work, that we have an economy that creates jobs, that we appreciate the working people of this country, and the corporate people of this country who are making our economy go. we don't want jobs created in government. we want jobs created in the private sector. >> former texas senator kay bailey hutchison. thank you for taking time with us. >> thank you very much. >> we have breaking news down in washington, d.c. to eamon javers. >> the irs is putting out a new statement here in the past couple of minutes back to that hacking attempt last spring. if you remember back in may, the irs said hackers had been able to use the so-called get

transcript feature of the irs' website to get in and get potential access anyway to taxpayer information using data they already had. inputting the data and getting tax information sent to them as if they were the taxpayer. now putting out new numbers here around that attack and saying they have gone back and done a deeper dive into it. they found potential access of 390,000 additional taxpayer accounts during the period from january 2014 through may of 2015. in addition, the irs says 295,000 taxpayer transcripts were targeted. but access was not successful. so a lot more people here potentially affected in this hack than initially known. >> thank you very much. we appreciate that. we're awaiting senator marco rubio, who is apparently going to make some remarks somewhere, maybe he'll bring some water as well. who knows. revision in fourth quarter gdp meantime showing the u.s. economic growth was better than

expected. grew at an annual rate of 1% on the nose instead of .7%. will this slight uptick last? discuss that and more, brooklyn dwyer, and joseph lavorna. you just downmarked the global economy. had do you see that caused you to do that? >> well, clearly there are a lot of trouble spots. we see china struggling with its own economy. probably having to devalue currency one more time this year. brazil is in a depression and could be in even longer depression. things could get rally bad. russia looks like it could run out of cash by the end of the year. that could be quite stressful. and the european situation we have very low inflation, inflation numbers out this morning suggesting it could be lower than expected, which means central bank will have to

respond. >> does a low in global economy pull the u.s. into recession or the u.s. pull the world economy out? >> works both ways. right now the u.s. has been the outperformer. we don't have a tremendous amount of exports to the rest of the world, but not unaffected. that global sentiment and risk idea i think is very pertinent now. that's really dragging down expectations and business confidence. >> joe, your thoughts on the numbers that were out today. is it a trend that could pick up steam or is it just sort of a steamless trend? >> i would -- more of a steamless trend, tyler. i thought the number would be revised down because i thought inventories would be lower. that's what the bureau of economic analysis, the data they used had suggested going in and instead inventories barely fell in the quarter. and what that means tyler is that is sets us up for a much bigger inventory drop this quarter. i've got growth at .5. the global economy is not great.

exports are soft. i'm guessing this is just a soft patch, to your question, we talked about this earlier in the week, the global economy is not great. in the past, the u.s. was the -- the locomotive. when you're growing at less than 2%, if global growth turns out to be softer than what we're assuming for any variety of reasons, that will hurt the u.s. and makes the u.s. more vulnerable to a negative shot. >> we had trillions of dollars thrown at the problem. central banks around the world, 1% and 2% growth in gdp, almost all of the quarters with the exception of a few outliers. i guess it is time -- i'll be the one to ask it, is it fixable? i'm going to fix this, fix that, no growth for years despite trillions thrown at it, is the u.s. economy fixable or is the fact that capital can go anywhere it wants at the push of an electronic button, america will be very difficult to remain competitive. >> the thing, brian, is the fiscal authorities, if they do the right thing, for example, take simpson bowles with

something several years ago that had been followed up on, certainly would help us, corporate tax system needs to be revised and made more competitive. the problem i would argue with central banks, what they have done is they -- i think they have gone too far and believe me, because they're the only game in town, the fiscal authorities are effectively paralyzed, they needed the central banks to push things further. i would argue what that has done is left the politicians, if you will, off the hook. i'm hopeful if there is an office next year, it will come with a meaningful fiscal stimulus package that will get the economy moving because i don't believe negative rates or further quantitative easing or forward guidance or other unconventional policies will work much more. >> thank you for your patience today. a lot of breaking news and so we thank you. >> i know you want to respond. we'll get you back on soon. >> no problem. >> i got a little worked up. let's do trading nation. shares of weight watchers losing more than a quarter of their

rawl you today after a disappointing earnings report. is the stock a bargain? i don't know. joining us, alex furman, covers the stock for craig hallum, david seeburg at callum. you say the stock is worth 35 bucks. make your case. >> you got a lot of room for numbers to move higher as the year progresses, business that people think about dieting four, five, six weeks of the year in january, february. i think now you have a case for this to become a much less seasonal business with oprah on board. she's influential as a partner and spokesperson, strategic marketing partner. as you look out over the next couple of years, you're going to see a lot of growth from new subscribers. the big disconnect is revenue growth is going to be negative in the first quarter this year. that shouldn't be unexpected to anyone. most of the revenue you have first quarter is from customers who joined prior to oprah's involvement and weren't very many of those customers then.

this will be a slow building transition but numbers move higher and our price targets based on 13 times ebitda, take into account where the debt trades at market levels and that's where the stock traded. >> what is callum's view on weight watchers? >> we don't cover the stock, but my particular view on this, i think on fast we talked about it. the day the news came out and the stock rocketed higher on the oprah effect, it went out in 2005, there is no reason that a celebrity or anyone like oprah winfrey should have that positive an impact on the stock's valuation because they sign on or take a stake in the company. i look at it and say trends have changed. absolutely changed. so fitness is much more in vogue than dieting. i can't imagine that oprah is going to turn the needle for the company. i look at this and say investors paid oprah 15 cents a share in the past quarter.

that's absurd for a company to actually have a spokesperson to come on and actually discuss, you know, anything meaningful. pay them that kind of royalty, it is insane. look, valuation here, maybe 10 1/2 bucks, buy it for a trade, no way i would touch this thing from a long-term perspective at these current levels. >> david seaburg, thank you very much. alex, thank you very much as well. appreciate it. for more trading nation, listen up, go to trading nation.cnbc.com. don't do it until you're in a safe location. >> check out this high flying stock. hawaiian holdings. it is up more than 120% over the last year. most of the airlines haven't been doing well at all. mike dengerly is president of hawaiian holdings. good to have you here. you have the shirt on as well. >> absolutely.

it is part of the uniform here. >> yes. your shares have done very well. i'm going to start with a big concern now, zika. they declared a stat of emergency in hawaii because of concerns about the zika virus. are you worried that will impact travel to hawaii, which i think would hurt your sales. >> we have seen no effect on demand of bookings from the issue of dengue, what we have here in the state of hawaii. it is located in pretty remote region of the big island. zika virus is present only in one of the destinations that we serve, american samoa. and we're following the guidance of the cdc. we have seen absolutely no book away of any sort from any of our geographies. >> where do you make the most money? the flights to and from hawaii or the flights among the hawaiian islands? >> over the long-term, i think they're all pretty much evenly

balanced. i think in an environment where the price of fuel is lower than it has been, that tends to favor the longer haul flights where we consume more fuel than we do on the shorter haul flights. these things have a way of balancing out and if you look back over the last ten years, they would be pretty much even. >> i imagine hawaiian air saved a bit of money thanks to low oil prices. what have you spent that money on? have you expanded capacity. do you have plans to expand capacity? >> in the case of hawaiian, we expanded very, very rapidly the beginning of this decade and we took on quite a lot of debt in order to do so. we bought new airplanes. and so the opportunity of seeing the cost savings from lower fuel to the bottom line has really given us the opportunity to retire quite a bit of debt and that's been our highest

priority. we haven't changed our capacity outlook, we haven't gone out and ordered a bunch of new airplanes, haven't changed our plans. instead, we're using this good time to strengthen our balance sheet. >> are you being hit by a slowdown in china and/or japan? >> curiously no. the demand for the hawaii vacation and these locations has been really very strong. we have, of course, had the translation issue associated with the fact that the u.s. dollar has strengthened versus the currencies. if you look at the demand in the local currencies, the tickets we sell in japan and in china, there has been really no impact at all from the economic slowdown and both those nations and indeed i think we're pretty encouraging. this july we're starting a new service to japan. such has been the results we have seen from that part of the world. >> one analyst report suggested because you have almost a near monopoly on the intraisland, you

can charge a pretty solid premium penny for those flights. that helps out a lot when it comes to margins. is that a good assessment? >> i think it is a somewhat cursory assessment. we do operate about 90% of the flights between the islands and the state of hawaii. we have in addition to our responsibility to our shareholders, we have responsibility to the community. and if you look at average fare we charge between the islands, which are between 70 and $80, what our economy receives, for these flights, you compare that to fares on the main land, i don't think anybody would say we're leveraging our position here in the islands. again, when the price of oil goes down, the biggest beneficial impact is on the longer haul than the shorter haul flying. the other big issue that we deal with particularly on our short haul flying is the increase in rates of federal taxation which

tend to many of which -- many of the fees and charges tend to be applied on a per trip basis rather than on a value ticket basis. >> hadn't thought of that. okay. >> mark, i'm curious. there is increasing talk about recession in the united states. how recession proof is your airline? there was a note going around, assessing what the break even revenue for available seat mile would be. would we see declines of 16 to 32% that we saw in 2009? are airlines -- is hawaiian in a much better state where we wouldn't see those sorts of declines? >> well, casting back to that period, and i was in the position i'm in now, back in 2007, 2008, 2009, i can remember being anxious when we went into the global financial crisis and the recession, the impact it had in california of huge market for us. that what affect that would have on demand for the hawaii

vacation. at that time we didn't see demand slow down. and for -- it really sort of orders a sense that traveling for vacation is no longer what you do with that discretionary slice of your income, but has become more of a higher priority in people's expenditure patterns. one recession doesn't make that proof, but from where we sit right now, we wouldn't anticipate seeing that kind of dramatic drop that others experience in 2009. >> love the shirt, mark. thank you for joining us. mike dunkerly of hawaiian airlines. >> thank you very much. >> and "power lunch" will be right back. >> and now, the latest from trading nation.cnbc.com. and a word from our sponsor. >> if you try to decide between a market order and a limit order, market orders may be appropriate on a stock that trades a lot of volume and has a

fairly tight bid spread. for stocks that have wider bid spreads or trade lower val, you may want a limit order instead.

shares of united technology after they resumed trading.

they were halted for news pending and put out a statement. david faber who broke the original story this will be in merger talks with honeywell is here with us here. honeywell puts out a statement at 9:00 and united technologies puts out a statement later and it reads like they are rejecting a bear hug and there's not a deal happening. what's going on? >> what's going on, of course, it has been an extraordinary work we made public the talks taken place between the two companies and the fact there had been a recent proposal from honeywell to buy united technology. honeywell choose that as an opportunity to come public with that proposal and start making the case to united technology shareholders as to why it feels they should pressure management to come to the negotiating table. in this week where we've been following the story, we've had greg hayes join us on tuesday on squawk on street to say absolutely no way that a deal in his opinion can happen because of the antitrust risk of combining these two companies.

the back and forth continued to the point where this morning, honeywell came back and in a public plea again, largely to united technology shareholders makes the case for why it believes both the antitrust risk is not significant, something they did yesterday with me on tv when christine, their antitrust advicer joined me in an interview and made the case on value, as to why the synergies are so significant and will add up to significant accretion overall to earnings and stock price for the combination because of the higher multiple that honeywell currently gets. then we get united technologies coming out and saying, first of all, on value, we don't agree with your math and secondly, let's remind you yet again as to all of the reasons we think this trans sks can't happen, namely antitrust and by the way, did we mention antitrust. >> where's the greatest antitrust risk if there is

antitrust risk? >> it's in the aerospace business. >> instrumentation. >> without a doubt. when you look at united technology's recent rebuttal, if you will, they go through in detail about the plane and have this great slide they've been using that we had when we had greg haze on earlier, all of the things solid into the airport. airbus's ceo did say things that would indicate they would not be in favor of such a deal. but that's where the focus is. >> there's one line in the statement from united technology honeywell's proposal grossly undervalues technology, that stands out in bold as give us more money and maybe we'll talk some more. am i wrong? >> i don't know that you're wrong and i do know from following as long as i have, the playbook honeywell is following here, in my mind would likely mean to some extent they can warm up the share base of united

technologies and get people talking, they'll come back with a higher offer than the 108 you're looking at right there, with something that's 10%, 12% higher and offers some sort of protections on antitrust, perhaps a guarantee to die vest certain things or hell or high water too go to any end they need to and take on the risk themselves. that's where it feels this is going towards, it doesn't mean they are going to succeed. language like that, we'll see. we'll see. it's very hard to imagine they are actually going to succeed but they are giving it a shot since the bid was made public. >> because you're wearing a half zip and no tie, i'll ask you to speculate. here you go. any chance that the script could be flipped? is it possible because the companies are nearly the same size, could utx flip it and try to go after honey well or dare i say ge could ge come in and try to take over utx? >> ge as you well know, has been there before the last time we

reported utxs getting close to a deal six years ago, ge did swoop in. i don't think this is likely at this point and i don't think they are in a position to flip the tables and in parlt because they are smalling still. remember the respected market caps changed dramatically. last spring when they entertained and initiated talks, but given hayes has said and everything they've got on paper, how can they come back and say we want to do the deal? it doesn't seem likely. >> we have a minute. the ball is in the court of utc shareholders and up to them to do something to make the board consider this proposal? >> this is not a case where i think you're going to see honeywell go truly hostile. this is a bear hug, trying to put pressure to talk to ceo greg hayes and talk to the board of directors, why don't you engage. that's about as far as honeywell can push it.

the path going beyond that seems highly unlikely in terms of a hostile offer where they would challenge for the board and missed deadlines on that. that's where they are. they are hoping they can continue to follow this jaw bone enough to get the shareholders to put the pressure on so the next offer that comes may be better -- >> we've got to interrupt you, marco rubio is just taken the stage. we appreciate you jumping for this, though. >> study his insults, i'm not sure about study his insults. again, he portrays himself as something he's not and we look forward to unmasking him. what's at stake now is important. he's the front-runner according to polls and elections and could become the nominee, we're not going to let that happen and allow the party of reagan or conservative movement to be taken over by a con man. >> will you still support him? >> he's not going to be the

republican nominee. the republican party would be split apart. we cannot allow the party of reagan to be taken over by a con man. >> you relish going after him. >> is that your key move you're trying to reach out, do you think that's enough to get you where you need to be? >> it's an important group because election is so much about them. we're debating what is america going to be like when they start businesses or families or perhaps in the middle of trying to do that now. they have as much at stake in this election if not more so than any group in this country. that's one of the things we're excited about. i won't just unify the republican party, i'll grow it. part of it will be to take our message to people that perhaps in the past not voted for republicans. >> is there enough time and money -- with this change -- as compared to donald trump, i'm not concerned about looking unpresidential. being presidential means the ability to answer serious questions about important topics and donald proved he has no plan for health care, no idea how to

balance the budget. i wish wolf blitzer and moderators would have pressed him more on that and everyone. guy doesn't know what the nuclear try add has and has no idea that south korea contributes significantly too the defense defense we have and he wants to be in charge of the nuclear arsenal of the united states and power to send young men and women off to war. we're going to ub mask him for the con man he is. >> slow or stop donald trump? he's the front runter, no doubt about it. there's a sense of urgency. the con serve tif movement could fall into the hands of something who has conned a significant number of americans into something he's not. this is the party of reagan and party built on optimism and last night you had the front-runner in the republican debate defending planned parenthood and saying he's not going to take sides between israel and palestinians. that would be a stunning shift for this party and quite frankly

would make us indistinguishable from the democrats. >> your campaign is guaranteed to win florida. >> are you going to do this every day against donald trump? >> we'll do it often. >> your campaign is guaranteed that you will win florida. you're guaranteeing -- >> what happens if you don't. >> we'll win florida. >> are you comfortable with the phrase anti-trump candidate, rubio? >>ize front-runner and only way to stop him voters coalesce around someone to stop him. i think it's time to coalesce around someone that can beat him and stop him and around someone that can unite the party and grow it. this the argument i'm making. >> is that the direction we'll see in the coming -- >> donald trump is the front-runner, won the last three states, leads in every poll, the time for action is now. again, it goes back to what i said. if you sense